Ontario reports much smaller budget deficit of $1.1-billion, despite tariff uncertainty

Ontario’s economy fared better than the government had expected – even with the added uncertainty brought on by U.S. tariffs.

Ontario says its budget deficit for the fiscal year that ended in March was just $1.1-billion, much lower than the $6-billion it had projected earlier this year, as the province’s economy fared better than the government had expected – even with the added uncertainty brought on by U.S. tariffs.

The final numbers in the province’s public accounts for 2024-25, released on Friday, show that the province’s revenue from taxes and other sources came in much higher than it had projected in its March 2024 budget, up by 8.6 per cent.

Some of that boost includes billions from a massive onetime settlement between provincial governments and tobacco companies of a legal battl